E Bay sells back Craiglist Stake putting an end to Litigation Battle
E Bay sold back its 28.4 stake in Craigslist Inc in a conclusive act following years of litigation. Though the exact stake price in Craigslist has not been disclosed EBay stated that all litigation will be dismissed. EBay will now solely focus on its retail marketing division and is attempting to close off the EBay Enterprise that gives timely delivery and customer support to e merchants. According to Kenny Rice a top analysts at Needham and Co this is a serious effort to eliminate other peripheral interests and focus on the core competency. According to Rice, Craigslist’s market response is waning and it doesn’t seem to be important for E Bay’s future. Craigslist has alleged that E Bay used critical proprietary data belonging to the former in order to set up its business.
The amount paid by EBay for the investment was $34 million in accordance to the SEC Filing. The enterprise stated that this amount was not significant to shareholders. Gil Luria a top analyst working at Wed bush Securities Inc echoed the same statement saying that the goal was to focus on core competency, generate cash by selling off peripherals and return money to shareholders.
Craig Newmark founded the company Craiglist in 1995. Newmark used to work as an erstwhile International Business Machine (IBM) programmer as a compiled list of events of San Francisco. According to website traffic ratings it is positioned at no 8 just behind EBay. Craiglist remained stoical about the selloff, quoting Shakespeare’s quote “all is well that ends well” to sum up the settlement.